The Yankees are asking for $350 million in tax-exempt bonds to be issued, or else the $1.3 billion new Yankee Stadium may not be completed, state Assemblyman Richard Brodsky said on Tuesday.
New York City officials confirmed the request by the Yankees, but it would require a change to IRS regulations.
"Right now, they (the Yankees) are saying they don't think they can complete the stadium unless the Internal Revenue Service ruling is reversed and they apparently have been joined in this effort to reverse the ruling by the Nets and the Mets," Brodsky told Reuters by phone.
The Yankees have said that they will, however, complete the project, whether the IRS change in regulation goes into effect, or not. As reported by The AP:
“The effort on the completion bonds will not affect the completion of the stadium,” team president Randy Levine said. “We are working under the strong leadership of the city and state along with other projects to seek relief from the IRS regulation.”
Janel Patterson, of the New York City Economic Development Corp., which is working with the Yankees, said the project isn’t threatened. But she said the city is working to relieve an IRS regulation that prohibits more public debt to be incurred for the stadium. State Assemblyman Richard Brodsky, of Westchester, said that IRS change also is being sought to help stadium and arena projects for the New York Mets and New Jersey Nets.
The Yankees announced earlier this year that construction of the stadium would cost an addiitional $300 million more than expected (on top of three parking structures totallying $340 million, repleat with 600 free spaces for Yankee VIPs) . The team is also the most valuable American sports franchise, and forth most valuable in the world, according to Forbes. The Yankees brand, alone, is worth $217 million and has increased in value 44 percent the past three years.
Remember, in 2006, Jonathan D. Schiller, a lawyer for the Yankees said, “The Yankees will have to consider leaving the city,” when Save Our Parks filed a lawsuit seeking an injunction to halt construction of the stadium. Mr. Brodsky’s comments seem much the same.